KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to remain weak next week on lack of catalysts, as production for August is expected to be higher, said a dealer.
"CPO is likely to trade lower given the expectation of higher production. We expect it to trade between RM2,300 and RM2,450 a tonne next week," palm oil trader David Ng told Bernama.
Another dealer said CPO prices might be supported by physical buyers taking advantage of the weak ringgit versus the US dollar.
Meanwhile, the Malaysian Palm Oil Council (MPOC) said this week that Nigeria was expected to import more Malaysian crude palm oil (CPO) and palm olein in the next few months, and possibly towards the end of the year, to replenish declining stock and surge in demand post-COVID-19.
The council said the Malaysian government's announcement of a 100 per cent exemption on CPO export duty till year-end gave local palm oil exporters an edge over other exporting countries.
For the week just ended, the market was traded mostly lower as concerns over a second wave of COVID-19 cases could hit demand.
On a Friday-to-Friday basis, the CPO futures contract for July 2020 improved RM19 to RM2,473 per tonne, August 2020 gained RM27 to RM2,427 per tonne, September 2020 increased RM1 to RM2,368 per tonne and October 2020 rose RM9 to RM2,342 per tonne.
Weekly turnover fell to 193,822 lots from 256,328 lots last Friday while open interest grew to 238,188 contracts from 227,871 contracts.
On the physical market, July South was down RM30 to RM2,500 per tonne. - Bernama
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